AhlulBayt News Agency (ABNA): Amid the escalating conflict between the United States and Israel against Iran, “petroyuan” has emerged as one of the most significant potential financial outcomes. Deutsche Bank has stated that this confrontation is challenging the dollar’s central role in global oil trade and may serve as a catalyst for weakening the petrodollar system and accelerating the broader adoption of the Chinese yuan in oil settlements; a development highlighted by Bloomberg.
The German bank believes one of the long-term consequences of the conflict will be a gradual shift toward the yuan, particularly in light of reports indicating that Iran is granting passage for tankers through the Strait of Hormuz only when oil payments are made in yuan. This development transforms the conflict into a direct test of the dollar’s supremacy in the world’s most critical commodity market.
Malika Sachdeva, a strategic analyst at Deutsche Bank, noted that any further erosion of the petrodollar system could have far-reaching implications for the global use of the dollar in trade and foreign exchange reserves—especially at a time when China is intensifying efforts to strengthen the international standing of the yuan and challenge the dollar’s dominance.
At the same time, developments in India reflect a tangible move toward alternative currencies. According to Bloomberg, Indian refineries are increasingly purchasing Russian oil using non-dollar currencies to reduce their reliance on the U.S. dollar.
Beyond the yuan, the use of other currencies such as the Singapore dollar and Hong Kong dollar is also under consideration, with implementation depending on the level of bank acceptance.
Bloomberg reports that Indian refineries have secured approximately 60 million barrels of Russian crude for delivery next month; an action driven by concerns over supply stability amid ongoing conflict.
India, heavily dependent on oil imports, became one of the largest buyers of discounted Russian oil after the 2022 Ukraine war but had previously reduced purchases under U.S. pressure. Now, amid the new crisis, it has returned to the Russian market.
In this context, Russia stands as one of the primary beneficiaries, with its oil revenues reaching their highest level since March 2022.
Overall, this conflict is not merely a supply crisis; it has the potential to reshape the very rules of global oil trade, from key transit routes like the Strait of Hormuz to the currencies used in transactions, and could ultimately determine the future competition between the petrodollar and the petroyuan.
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